Naspers will acquire Avito shares from other shareholders
, which is “the largest media group outside of the US and China,” is set to become the biggest shareholder in Avito, reports IOL
. The deal is costing Naspers some $1.2 billion (R16.2 billion).
Naspers is acquiring shares from other shareholders in Avito, says BDLive
. This will raise its current stake of 17.4% in the company, to 67.9%.
One of the shareholders Naspers is set to acquire shares from is Kinnevik, a company based in Stockholm, says MoneyWeb
. It currently holds a “31% stake in Avito”.
The deal will raise Naspers exposure to Russia’s “online retail market,” notes Bloomberg
. Even though the Russian “economy remains in turmoil”.
Naspers already has a “29% stake in Mail.Ru Group,” adds MoneyWeb
. This is “Russia’s largest operator of social networks”.
What does Avito do?
Avito was a platform for general classifieds, but over the past two years, it’s moved into classifieds verticals and is a key “player in five key verticals: General goods, auto, real estate, jobs and services,” reports Fin24
. On a monthly basis, Avito has about 35 million unique visitors and 8.6 billion page views.
The Russian company posted annual revenue growth of 76% in its latest financial year, with high profit margins, notes IOL
Naspers is making the move as it expects the e-commerce market in Russia “to grow significantly,” says BDLive
. It forecasts e-commerce ratios to “move in line with other large countries”.
Shares in Naspers didn’t show much reaction to the news, trading 0.89% higher at R1,999.82. A move in line with the Top 40 Index.
Time will tell if Naspers new acquisition pays off as the company continues to expand.
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